NHS finances worsen with £130m overspend

Financial performance data published by NHS England and Improvement, which combined the performance of providers and commissioners, showed a deficit of £1.3bn for the first six months of 2019-20, which was £129.6m worse than planned.

After the first three months of the year, the NHS reported an overall overspend of £893m, which was just £13m worse than planned.

Figures for the latest quarter, from July to September, showed local NHS trusts and clinical commissioning groups spent a combined £286m more than planned (£134m and £152m respectively). This was partly offset by income and savings from technical adjustments, uncommitted central funding, central running and programme costs and direct commissioning.

Unusually, mental health trusts were missing their combined financial plan by around £43m, after several years of exceeding their plans.

The report says the mid-year position for providers was £160m better than at the same point last year — since when the NHS has started to receive improved revenue funding growth under a new five-year government settlement.

In terms of the year-end forecast, NHSE/I says the provider sector will “finish the year essentially on plan”. The sector is forecasting a deficit of £320m, which would be £38m worse than planned.

However, the pattern of performance in previous years suggests this will be highly challenging.

It also suggests that many CCGs will “recover their position to breakeven”, with the commissioning sector forecasting an underspend of £251m.

If the forecasts hold, this would equate to an overall NHS overspend of £69m.

Regional figures for CCGs are provided, and show commissioners in the Midlands were £66m overspent after six months. Only CCGs in the North East and Yorkshire reported a combined underspend.